Q3 Highlights
Revenue of $307 million, up 1% adjusted for FX and Corporate Online Banking divestiture, versus Q3 2021
Net income of $23 million
Repurchased 1.2 million shares
Reaffirming full-year 2022 revenue guidance on a constant currency basis
ACI Worldwide (NASDAQ: ACIW), a global leader in mission-critical, real-time payments software, announced financial results today for the quarter ending September 30, 2022. ACI delivered revenue of $307 million and adjusted EBITDA of $46 million. New ARR1 bookings were up 35% versus Q3 2021 and up 40% on a year-to-date basis.
“In the third quarter, we again delivered revenue in line with guidance and saw notable bookings success across all segments, providing visibility into future revenue growth,” said Odilon Almeida, president and CEO of ACI Worldwide. “However, inflationary pressures on the interchange component of our Biller segment and foreign exchange rates are impacting our EBITDA in the near term. Our actions to mitigate the impact of these pressures, especially the Biller interchange component, are beginning to pay off. Despite these challenging market conditions, we are pleased to maintain our full-year revenue guidance on a constant currency basis.”
Almeida continued, “The disciplined execution of ACI’s three-pillar strategy remains intrinsic to our performance and provides the flexibility to invest in growth and return capital to shareholders through share repurchases. Our continued strong new ARR bookings and new business momentum across our segments enhance our confidence in our accelerating growth trajectory. We are also on track to launch our next-generation, real-time payments cloud platform in 2023, driving new growth across our business segments.”
FINANCIAL SUMMARY
In Q3 2022, revenue was $307 million, down 3%, or up 1% compared to Q3 2021 adjusted for FX and the divestiture of ACI’s Corporate Online Banking division, which was completed in September. Adjusted EBITDA in Q3 was $46 million, down 38%, compared to Q3 2021, or 36% adjusted for FX and the divestiture2. Net adjusted EBITDA margin in Q3 2022 was 22%, or 21% adjusted for FX and the divestiture2. Q3 new ARR bookings of $30 million were up 35% compared to Q3 2021 and up 40% year to date.
- Bank segment revenue declined 11%, or 4% adjusted for FX and the divestiture2;segment adjusted EBITDA decreased 26%, or 23% adjusted for FX and the divestiture2, versus Q3 2021.
- Merchant segment revenue decreased 9%, or 3% adjusted for FX; segment adjusted EBITDA was down 31%, or 26% adjusted for FX, versus Q3 2021.
- Biller segment revenue grew 5% and segment adjusted EBITDA was down 18%, versus Q3 2021.
ACI ended the quarter with $135 million cash on hand and a debt balance of $1 billion, representing a net debt leverage ratio of 2.3x. The company has repurchased 3.2 million shares for $91 million year-to-date. As of September 30, 2022, ACI has $125 million remaining on its share repurchase authorization and expects to use approximately 50% of its cash flow to complete additional share repurchases over the remainder of the year.
REITERATING REVENUE GUIDANCE FOR 2022 ON A CONSTANT CURRENCY BASIS
On a constant currency basis, ACI is reiterating its full-year 2022 guidance provided on September 1, 2022. The company is adjusting its revenue guidance only to account for FX fluctuations. ACI expects 2022 revenue to be in a range of $1.39 billion to $1.405 billion.
Despite the solid revenue performance, FX and inflation are pressuring EBITDA in the near term. The impact of inflation is limited to the interchange component of the company’s Biller segment. As a result, ACI expects full-year 2022 adjusted EBITDA to be in the range of $365 million to $380 million.
CONFERENCE CALL TO DISCUSS FINANCIAL RESULTS
Today, management will host a conference call at 8:00 AM ET to discuss these results. Interested persons may access a real-time teleconference webcast at http://investor.aciworldwide.com/ or use the following number for dial-in participation: toll-free 1 (888) 660-6377; Conference ID: 3153574. Please provide your name and the conference name of ACI Worldwide, Inc.
About ACI Worldwide
ACI Worldwide is a global leader in mission-critical, real-time payments software. Our proven, secure and scalable software solutions enable leading corporations, fintechs, financial disruptors and merchants to process and manage digital payments, power omni-commerce payments, present and process bill payments, and address fraud and risk. We combine our global footprint with a local presence to drive the real-time digital transformation of payments and commerce.
© Copyright ACI Worldwide, Inc. 2022.
ACI, ACI Worldwide, ACI Payments, Inc., ACI Pay, Speedpay and all ACI product/solution names are trademarks or registered trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in the United States, other countries or both. Other parties’ trademarks referenced are the property of their respective owners.
To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude significant transaction-related expenses, as well as other significant non-cash expenses such as depreciation, amortization, and stock-based compensation, that we believe are helpful in understanding our past financial performance and our future results. The presentation of these non-GAAP financial measures should be considered in addition to our GAAP results and are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management generally compensates for limitations in the use of non-GAAP financial measures by relying on comparable GAAP financial measures and providing investors with a reconciliation of non-GAAP financial measures only in addition to and in conjunction with results presented in accordance with GAAP.
We believe that these non-GAAP financial measures reflect an additional way to view aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. Certain non-GAAP measures include:
- Adjusted EBITDA: net income (loss) plus income tax expense (benefit), net interest income (expense), net other income (expense), depreciation, amortization and stock-based compensation, as well as significant transaction-related expenses. Adjusted EBITDA should be considered in addition to, rather than as a substitute for, net income (loss).
- Net Adjusted EBITDA Margin: Adjusted EBITDA divided by revenue net of pass-through interchange revenue. Net Adjusted EBITDA Margin should be considered in addition to, rather than as a substitute for, net income (loss).
- Diluted EPS adjusted for non-cash and significant transaction related items: diluted EPS plus tax effected significant transaction related items, amortization of acquired intangibles and software, and non-cash stock-based compensation. Diluted EPS adjusted for non-cash and significant transaction related items should be considered in addition to, rather than as a substitute for, diluted EPS.
- Recurring revenue: revenue from software as a service and platform as a service fees and maintenance fees. Recurring revenue should be considered in addition to, rather than as a substitute for, total revenue.
- * ARR: Annual recurring revenue expected to be generated from new accounts, new applications, and add-on sales bookings contracts signed in the quarter.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. Generally, forward-looking statements do not relate strictly to historical or current facts and may include words or phrases such as “believes,” “will,” “expects,” “anticipates,” “intends,” and words and phrases of similar impact. The forward-looking statements are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements in this press release include, but are not limited to: (i) expectations regarding notable bookings success across all segments, providing visibility into future revenue growth, (ii) expectations regarding inflationary pressures on the interchange component of our Biller segment and foreign exchange rates impacting our EBITDA in the near term, (iii) expectations that our actions to mitigate the impact of these pressures, especially the biller interchange component, are beginning to pay off, (iv) expectations that our continued strong new ARR bookings and new business momentum across our segments enhance our confidence in our accelerating growth trajectory, (v) expectations that the launch of our next generation real-time payments cloud platform will drive new growth across our business segments and (vi) expectations regarding 2022 revenue and adjusted EBITDA.
All of the foregoing forward-looking statements are expressly qualified by the risk factors discussed in our filings with the Securities and Exchange Commission. Such factors include, but are not limited to, increased competition, business interruptions or failure of our information technology and communication systems, security breaches or viruses, our ability to attract and retain senior management personnel and skilled technical employees, future acquisitions, strategic partnerships and investments, implementation and success of our three-pillar strategy, impact if we convert some or all on-premise licenses from fixed-term to subscription model, anti-takeover provisions, exposure to credit or operating risks arising from certain payment funding methods, customer reluctance to switch to a new vendor, our ability to adequately defend our intellectual property, litigation, our offshore software development activities, risks from operating internationally, including fluctuations in currency exchange rates, adverse changes in the global economy, compliance of our products with applicable legislation, governmental regulations and industry standards, the complexity of our products and services and the risk that they may contain hidden defects, complex regulations applicable to our payments business, our compliance with privacy regulations, our involvement in investigations, lawsuits and other expense and time-consuming legal proceedings, exposure to unknown tax liabilities, consolidations and failures in the financial services industry, volatility in our stock price, demand for our products, failure to obtain renewals of customer contracts or to obtain such renewals on favorable terms, delay or cancellation of customer projects or inaccurate project completion estimates, impairment of our goodwill or intangible assets, the accuracy of management’s backlog estimates, the cyclical nature of our revenue and earnings and the accuracy of forecasts due to the concentration of revenue-generating activity during the final weeks of each quarter, restrictions and other financial covenants in our debt agreements, our existing levels of debt, the COVID-19 pandemic, and events outside of our control including natural disasters, wars, and outbreaks of disease. For a detailed discussion of these risk factors, parties that are relying on the forward-looking statements should review our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q.
|
ACI WORLDWIDE, INC. AND SUBSIDIARIES
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(unaudited and in thousands)
|
|
|
|
|
September 30,
2022
|
|
December 31,
2021
|
|
ASSETS
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash equivalents
|
$
|
134,799
|
|
|
$
|
122,059
|
|
|
Receivables, net of allowances
|
|
302,301
|
|
|
|
320,405
|
|
|
Settlement assets
|
|
727,754
|
|
|
|
452,396
|
|
|
Prepaid expenses
|
|
29,766
|
|
|
|
24,698
|
|
|
Other current assets
|
|
16,342
|
|
|
|
17,876
|
|
|
Total current assets
|
|
1,210,962
|
|
|
|
937,434
|
|
|
Noncurrent assets
|
|
|
|
|
Accrued receivables, net
|
|
248,285
|
|
|
|
276,164
|
|
|
Property and equipment, net
|
|
54,328
|
|
|
|
63,050
|
|
|
Operating lease right-of-use assets
|
|
37,916
|
|
|
|
47,825
|
|
|
Software, net
|
|
134,942
|
|
|
|
157,782
|
|
|
Goodwill
|
|
1,226,026
|
|
|
|
1,280,226
|
|
|
Intangible assets, net
|
|
235,053
|
|
|
|
283,004
|
|
|
Deferred income taxes, net
|
|
55,454
|
|
|
|
50,778
|
|
|
Other noncurrent assets
|
|
60,174
|
|
|
|
62,478
|
|
|
TOTAL ASSETS
|
$
|
3,263,140
|
|
|
$
|
3,158,741
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
Current liabilities
|
|
|
|
|
Accounts payable
|
$
|
38,227
|
|
|
$
|
41,312
|
|
|
Settlement liabilities
|
|
727,237
|
|
|
|
451,575
|
|
|
Employee compensation
|
|
43,637
|
|
|
|
51,379
|
|
|
Current portion of long-term debt
|
|
60,603
|
|
|
|
45,870
|
|
|
Deferred revenue
|
|
53,163
|
|
|
|
84,425
|
|
|
Other current liabilities
|
|
75,107
|
|
|
|
79,594
|
|
|
Total current liabilities
|
|
997,974
|
|
|
|
754,155
|
|
|
Noncurrent liabilities
|
|
|
|
|
Deferred revenue
|
|
22,440
|
|
|
|
25,925
|
|
|
Long-term debt
|
|
947,750
|
|
|
|
1,019,872
|
|
|
Deferred income taxes, net
|
|
30,465
|
|
|
|
36,122
|
|
|
Operating lease liabilities
|
|
32,235
|
|
|
|
43,346
|
|
|
Other noncurrent liabilities
|
|
34,060
|
|
|
|
34,544
|
|
|
Total liabilities
|
|
2,064,924
|
|
|
|
1,913,964
|
|
|
Commitments and contingencies
|
|
|
|
|
Stockholders’ equity
|
|
|
|
|
Preferred stock
|
|
—
|
|
|
|
—
|
|
|
Common stock
|
|
702
|
|
|
|
702
|
|
|
Additional paid-in capital
|
|
697,763
|
|
|
|
688,313
|
|
|
Retained earnings
|
|
1,183,230
|
|
|
|
1,131,281
|
|
|
Treasury stock
|
|
(555,753
|
)
|
|
|
(475,972
|
)
|
|
Accumulated other comprehensive loss
|
|
(127,726
|
)
|
|
|
(99,547
|
)
|
|
Total stockholders’ equity
|
|
1,198,216
|
|
|
|
1,244,777
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
3,263,140
|
|
|
$
|
3,158,741
|
|
|
|
|
|
|
|
|
|
|
|
|
ACI WORLDWIDE, INC.AND SUBSIDIARIES
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(unaudited and in thousands, except per share amounts)
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
2022
|
|
|
|
2021
|
|
|
|
2022
|
|
|
|
2021
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
Software as a service and platform as a service
|
$
|
195,540
|
|
|
$
|
191,456
|
|
|
$
|
597,080
|
|
|
$
|
583,530
|
|
|
License
|
|
43,661
|
|
|
|
54,454
|
|
|
|
168,260
|
|
|
|
110,383
|
|
|
Maintenance
|
|
49,163
|
|
|
|
53,519
|
|
|
|
151,143
|
|
|
|
159,037
|
|
|
Services
|
|
18,227
|
|
|
|
17,485
|
|
|
|
53,613
|
|
|
|
50,819
|
|
|
Total revenues
|
|
306,591
|
|
|
|
316,914
|
|
|
|
970,096
|
|
|
|
903,769
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
Cost of revenue (1)
|
|
171,753
|
|
|
|
158,712
|
|
|
|
517,372
|
|
|
|
476,811
|
|
|
Research and development
|
|
35,899
|
|
|
|
35,248
|
|
|
|
114,348
|
|
|
|
104,791
|
|
|
Selling and marketing
|
|
32,794
|
|
|
|
33,413
|
|
|
|
102,793
|
|
|
|
90,211
|
|
|
General and administrative
|
|
30,516
|
|
|
|
29,717
|
|
|
|
84,753
|
|
|
|
89,429
|
|
|
Depreciation and amortization
|
|
32,140
|
|
|
|
31,845
|
|
|
|
95,218
|
|
|
|
95,434
|
|
|
Total operating expenses
|
|
303,102
|
|
|
|
288,935
|
|
|
|
914,484
|
|
|
|
856,676
|
|
|
Operating income
|
|
3,489
|
|
|
|
27,979
|
|
|
|
55,612
|
|
|
|
47,093
|
|
|
Other income (expense)
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(14,336
|
)
|
|
|
(11,208
|
)
|
|
|
(37,014
|
)
|
|
|
(33,943
|
)
|
|
Interest income
|
|
2,995
|
|
|
|
2,834
|
|
|
|
9,205
|
|
|
|
8,553
|
|
|
Other, net
|
|
41,545
|
|
|
|
(1,088
|
)
|
|
|
45,801
|
|
|
|
(1,036
|
)
|
|
Total other income (expense)
|
|
30,204
|
|
|
|
(9,462
|
)
|
|
|
17,992
|
|
|
|
(26,426
|
)
|
|
Income before income taxes
|
|
33,693
|
|
|
|
18,517
|
|
|
|
73,604
|
|
|
|
20,667
|
|
|
Income tax expense (benefit)
|
|
10,576
|
|
|
|
4,753
|
|
|
|
21,655
|
|
|
|
2,347
|
|
|
Net income
|
$
|
23,117
|
|
|
$
|
13,764
|
|
|
$
|
51,949
|
|
|
$
|
18,320
|
|
|
Income per common share
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.20
|
|
|
$
|
0.12
|
|
|
$
|
0.45
|
|
|
$
|
0.16
|
|
|
Diluted
|
$
|
0.20
|
|
|
$
|
0.12
|
|
|
$
|
0.45
|
|
|
$
|
0.15
|
|
|
Weighted average common shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
113,812
|
|
|
|
117,512
|
|
|
|
114,584
|
|
|
|
117,574
|
|
|
Diluted
|
|
114,348
|
|
|
|
118,540
|
|
|
|
115,211
|
|
|
|
118,817
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
The cost of revenue excludes charges for depreciation but includes amortization of purchased and developed software for resale.
|
|
ACI WORLDWIDE, INC. AND SUBSIDIARIES
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(unaudited and in thousands)
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
23,117
|
|
|
$
|
13,764
|
|
|
$
|
51,949
|
|
|
$
|
18,320
|
|
|
|
Adjustments to reconcile net income to net cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
6,044
|
|
|
|
5,130
|
|
|
|
17,052
|
|
|
|
15,838
|
|
|
|
Amortization
|
|
26,096
|
|
|
|
28,250
|
|
|
|
78,817
|
|
|
|
84,528
|
|
|
|
Amortization of operating lease right-of-use assets
|
|
2,807
|
|
|
|
2,752
|
|
|
|
8,296
|
|
|
|
7,752
|
|
|
|
Amortization of deferred debt issuance costs
|
|
1,136
|
|
|
|
1,168
|
|
|
|
3,435
|
|
|
|
3,525
|
|
|
|
Deferred income taxes
|
|
(2,674
|
)
|
|
|
(2,184
|
)
|
|
|
(9,059
|
)
|
|
|
(11,742
|
)
|
|
|
Stock-based compensation expense
|
|
7,126
|
|
|
|
6,367
|
|
|
|
21,884
|
|
|
|
20,790
|
|
|
|
Gain on divestiture
|
|
(38,452
|
)
|
|
|
—
|
|
|
|
(38,452
|
)
|
|
|
—
|
|
|
|
Other
|
|
1,359
|
|
|
|
(463
|
)
|
|
|
2,483
|
|
|
|
(27
|
)
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Receivables
|
|
19,807
|
|
|
|
(20,801
|
)
|
|
|
5,767
|
|
|
|
55,953
|
|
|
|
Accounts payable
|
|
(1,728
|
)
|
|
|
(2,540
|
)
|
|
|
(3,047
|
)
|
|
|
(5,080
|
)
|
|
|
Accrued employee compensation
|
|
6,329
|
|
|
|
7,261
|
|
|
|
(3,872
|
)
|
|
|
(1,140
|
)
|
|
|
Deferred revenue
|
|
(11,899
|
)
|
|
|
10,042
|
|
|
|
(6,367
|
)
|
|
|
10,339
|
|
|
|
Other current and noncurrent assets and liabilities
|
|
(4,865
|
)
|
|
|
(9,248
|
)
|
|
|
(26,920
|
)
|
|
|
(54,573
|
)
|
|
|
Net cash flows from operating activities
|
|
34,203
|
|
|
|
39,498
|
|
|
|
101,966
|
|
|
|
144,483
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
(4,466
|
)
|
|
|
(4,893
|
)
|
|
|
(8,123
|
)
|
|
|
(12,968
|
)
|
|
|
Purchases of software and distribution rights
|
|
(7,656
|
)
|
|
|
(4,389
|
)
|
|
|
(18,394
|
)
|
|
|
(20,041
|
)
|
|
|
Proceeds from divestiture
|
|
100,139
|
|
|
|
—
|
|
|
|
100,139
|
|
|
|
—
|
|
|
|
Net cash flows from investing activities
|
|
88,017
|
|
|
|
(9,282
|
)
|
|
|
73,622
|
|
|
|
(33,009
|
)
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock
|
|
839
|
|
|
|
878
|
|
|
|
2,801
|
|
|
|
2,526
|
|
|
|
Proceeds from exercises of stock options
|
|
395
|
|
|
|
208
|
|
|
|
1,792
|
|
|
|
7,252
|
|
|
|
Repurchase of stock-based compensation awards for tax withholdings
|
|
(18
|
)
|
|
|
(37
|
)
|
|
|
(5,820
|
)
|
|
|
(14,833
|
)
|
|
|
Repurchases of common stock
|
|
(28,227
|
)
|
|
|
—
|
|
|
|
(90,934
|
)
|
|
|
(39,411
|
)
|
|
|
Proceeds from revolving credit facility
|
|
25,000
|
|
|
|
—
|
|
|
|
85,000
|
|
|
|
—
|
|
|
|
Repayment of revolving credit facility
|
|
(55,000
|
)
|
|
|
(25,000
|
)
|
|
|
(75,000
|
)
|
|
|
(55,000
|
)
|
|
|
Repayment of term portion of credit agreement
|
|
(49,606
|
)
|
|
|
(9,737
|
)
|
|
|
(70,825
|
)
|
|
|
(29,212
|
)
|
|
|
Payments on or proceeds from other debt, net
|
|
(737
|
)
|
|
|
(1,915
|
)
|
|
|
(10,106
|
)
|
|
|
(10,187
|
)
|
|
|
Net decrease in settlement assets and liabilities
|
|
24,659
|
|
|
|
22,611
|
|
|
|
20,084
|
|
|
|
(55,470
|
)
|
|
|
Net cash flows from financing activities
|
|
(82,695
|
)
|
|
|
(12,992
|
)
|
|
|
(143,008
|
)
|
|
|
(194,335
|
)
|
|
|
Effect of exchange rate fluctuations on cash
|
|
1,002
|
|
|
|
472
|
|
|
|
(60
|
)
|
|
|
84
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
40,527
|
|
|
|
17,696
|
|
|
|
32,520
|
|
|
|
(82,777
|
)
|
|
|
Cash and cash equivalents, including settlement deposits, beginning of period
|
|
176,135
|
|
|
|
164,909
|
|
|
|
184,142
|
|
|
|
265,382
|
|
|
|
Cash and cash equivalents, including settlement deposits, end of period
|
$
|
216,662
|
|
|
$
|
182,605
|
|
|
$
|
216,662
|
|
|
$
|
182,605
|
|
|
|
Reconciliation of cash and cash equivalents to the Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
134,799
|
|
|
$
|
141,482
|
|
|
$
|
134,799
|
|
|
$
|
141,482
|
|
|
|
Settlement deposits
|
|
81,863
|
|
|
|
41,123
|
|
|
|
81,863
|
|
|
|
41,123
|
|
|
|
Total cash and cash equivalents
|
$
|
216,662
|
|
|
$
|
182,605
|
|
|
$
|
216,662
|
|
|
$
|
182,605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
Adjusted EBITDA (millions)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Net income
|
$
|
23.1
|
|
|
|
$
|
13.8
|
|
|
$
|
51.9
|
|
|
|
$
|
18.3
|
|
|
|
Plus:
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
10.6
|
|
|
|
|
4.7
|
|
|
|
21.7
|
|
|
|
|
2.3
|
|
|
|
Net interest expense
|
|
11.3
|
|
|
|
|
8.4
|
|
|
|
27.8
|
|
|
|
|
25.4
|
|
|
|
Net other income (expense)
|
|
(41.4
|
|
)
|
|
|
1.1
|
|
|
|
(45.8
|
|
)
|
|
|
1.0
|
|
|
|
Depreciation expense
|
|
6.0
|
|
|
|
|
5.1
|
|
|
|
17.1
|
|
|
|
|
15.9
|
|
|
|
Amortization expense
|
|
26.1
|
|
|
|
|
28.2
|
|
|
|
78.8
|
|
|
|
|
84.5
|
|
|
|
Non-cash stock-based compensation expense
|
|
7.1
|
|
|
|
|
6.4
|
|
|
|
21.9
|
|
|
|
|
20.8
|
|
|
|
Adjusted EBITDA before significant transaction-related expenses
|
$
|
42.8
|
|
|
|
$
|
67.7
|
|
|
$
|
173.4
|
|
|
|
$
|
168.2
|
|
|
|
Significant transaction-related expenses:
|
|
|
|
|
|
|
|
|
Employee related actions
|
|
—
|
|
|
|
|
4.4
|
|
|
|
—
|
|
|
|
|
8.1
|
|
|
|
European datacenter migration
|
|
1.7
|
|
|
|
|
—
|
|
|
|
3.4
|
|
|
|
|
—
|
|
|
|
Divestiture transaction related
|
|
1.2
|
|
|
|
|
—
|
|
|
|
2.6
|
|
|
|
|
—
|
|
|
|
Other
|
|
—
|
|
|
|
|
1.6
|
|
|
|
—
|
|
|
|
|
2.5
|
|
|
|
Adjusted EBITDA
|
$
|
45.7
|
|
|
|
$
|
73.7
|
|
|
$
|
179.4
|
|
|
|
$
|
178.8
|
|
|
|
Revenue, net of interchange:
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
306.6
|
|
|
|
$
|
316.9
|
|
|
$
|
970.1
|
|
|
|
$
|
903.8
|
|
|
|
Interchange
|
|
98.4
|
|
|
|
|
87.8
|
|
|
|
295.4
|
|
|
|
|
262.6
|
|
|
|
Revenue, net of interchange
|
$
|
208.2
|
|
|
|
$
|
229.1
|
|
|
$
|
674.7
|
|
|
|
$
|
641.2
|
|
|
|
Net Adjusted EBITDA Margin
|
|
22
|
|
%
|
|
|
32
|
%
|
|
|
27
|
|
%
|
|
|
28
|
|
%
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
Segment Information (millions)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Revenue
|
|
|
|
|
|
|
|
|
Banks
|
$
|
117.5
|
|
$
|
131.7
|
|
$
|
391.6
|
|
$
|
341.7
|
|
Merchants
|
|
35.6
|
|
|
39.0
|
|
|
113.1
|
|
|
115.1
|
|
Billers
|
|
153.5
|
|
|
146.2
|
|
|
465.4
|
|
|
447.0
|
|
Total
|
$
|
306.6
|
|
$
|
316.9
|
|
$
|
970.1
|
|
$
|
903.8
|
|
Recurring Revenue
|
|
|
|
|
|
|
|
|
Banks
|
$
|
57.3
|
|
$
|
63.6
|
|
$
|
179.3
|
|
$
|
189.6
|
|
Merchants
|
|
33.8
|
|
|
35.2
|
|
|
103.5
|
|
|
106.0
|
|
Billers
|
|
153.6
|
|
|
146.2
|
|
|
465.4
|
|
|
446.9
|
|
Total
|
$
|
244.7
|
|
$
|
245.0
|
|
$
|
748.2
|
|
$
|
742.6
|
|
Segment Adjusted EBITDA
|
|
|
|
|
|
|
|
|
Banks
|
$
|
49.8
|
|
$
|
67.6
|
|
$
|
184.7
|
|
$
|
159.3
|
|
Merchants
|
|
9.8
|
|
|
14.2
|
|
|
32.2
|
|
|
42.0
|
|
Billers
|
|
26.3
|
|
|
32.0
|
|
|
81.0
|
|
|
100.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
2022
|
|
2021
|
|
EPS Impact of Non-cash and Significant Transaction-related Items (millions)
|
EPS Impact
|
|
$ in Millions
(Net of Tax)
|
|
EPS Impact
|
|
$ in Millions
(Net of Tax)
|
|
GAAP net income
|
$
|
0.20
|
|
|
$
|
23.1
|
|
|
$
|
0.12
|
|
$
|
13.8
|
|
Adjusted for:
|
|
|
|
|
|
|
|
|
Gain on divestiture
|
|
(0.26
|
)
|
|
|
(29.2
|
)
|
|
|
—
|
|
|
—
|
|
Significant transaction-related expenses
|
|
0.02
|
|
|
|
2.2
|
|
|
|
0.04
|
|
|
4.5
|
|
Amortization of acquisition-related intangibles
|
|
0.06
|
|
|
|
6.7
|
|
|
|
0.06
|
|
|
7.0
|
|
Amortization of acquisition-related software
|
|
0.04
|
|
|
|
4.5
|
|
|
|
0.05
|
|
|
6.0
|
|
Non-cash stock-based compensation
|
|
0.05
|
|
|
|
5.4
|
|
|
|
0.04
|
|
|
4.8
|
|
Total adjustments
|
$
|
(0.09
|
)
|
|
$
|
(10.4
|
)
|
|
$
|
0.19
|
|
$
|
22.3
|
|
Diluted EPS adjusted for non-cash and significant transaction-related items
|
$
|
0.11
|
|
|
$
|
12.7
|
|
|
$
|
0.31
|
|
$
|
36.1
|
|
|
Nine Months Ended September 30,
|
|
|
2022
|
|
2021
|
|
EPS Impact of Non-cash and Significant Transaction-related Items (millions)
|
EPS Impact
|
|
$ in Millions
(Net of Tax)
|
|
EPS Impact
|
|
$ in Millions
(Net of Tax)
|
|
GAAP net income
|
$
|
0.45
|
|
|
$
|
51.9
|
|
|
$
|
0.15
|
|
$
|
18.3
|
|
Adjusted for:
|
|
|
|
|
|
|
|
|
Gain on divestiture
|
|
(0.25
|
)
|
|
|
(29.2
|
)
|
|
|
—
|
|
|
—
|
|
Significant transaction-related expenses
|
|
0.04
|
|
|
|
4.7
|
|
|
|
0.07
|
|
|
8.0
|
|
Amortization of acquisition-related intangibles
|
|
0.18
|
|
|
|
20.6
|
|
|
|
0.18
|
|
|
21.1
|
|
Amortization of acquisition-related software
|
|
0.12
|
|
|
|
14.1
|
|
|
|
0.16
|
|
|
19.1
|
|
Non-cash stock-based compensation
|
|
0.14
|
|
|
|
16.6
|
|
|
|
0.13
|
|
|
15.8
|
|
Total adjustments
|
$
|
0.23
|
|
|
$
|
26.8
|
|
|
$
|
0.54
|
|
$
|
64.0
|
|
Diluted EPS adjusted for non-cash and significant transaction-related items
|
$
|
0.68
|
|
|
$
|
78.7
|
|
|
$
|
0.69
|
|
$
|
82.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
Recurring Revenue (millions)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
SaaS and PaaS fees
|
$
|
195.5
|
|
$
|
191.5
|
|
$
|
597.1
|
|
$
|
583.5
|
|
Maintenance fees
|
|
49.2
|
|
|
53.5
|
|
|
151.1
|
|
|
159.1
|
|
Recurring Revenue
|
$
|
244.7
|
|
$
|
245.0
|
|
$
|
748.2
|
|
$
|
742.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annual Recurring Revenue* (ARR) Bookings (millions)
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
ARR bookings
|
$
|
30.3
|
|
$
|
22.4
|
|
$
|
69.5
|
|
$
|
49.7
|
_________________________________
1 “ARR”' is annual recurring revenue expected to be generated from new accounts, new applications and add-on sales bookings contracts signed in the quarter
2 Corporate Online Banking divestiture
View source version on businesswire.com: https://www.businesswire.com/news/home/20221102005228/en/